Tension brews in Mumias Sugar over management overhaul

Leaders from Western region have welcomed a suggestion by the Government for total overhaul of Mumias Sugar Company’s (MSC) top management, saying this will help revive the ailing sugar miller.

The calls have created anxiety at the firm as top managers wait for the next move by the Jubilee Government, which has promised to clean up the mess and help set up new order.

The State has lined up Sh5 billion as part of a bailout plan which the Central Organisation of Trade Union (Cotu) says could end up in people’s pockets if not administered properly.

The union’s Secretary General Francis Atwoli has said without firm measures to ensure transparency and proper disbursement, the Sh5 billion Government bailout will likely be diverted to individual accounts.

Speaking in Ikolomani over the weekend, Atwoli asked President Uhuru Kenyatta to take full control of the money to prevent embezzlement and diversion.

“We are afraid that money may not reach the miller as the Government has directed. It’s a well-known secret that a few people in Government are still corrupt and want to thrive on taxpayer’s money,” he said.

Mr Atwoli, however, welcomed the gesture to bail out MSC terming it "the best gesture" from Jubilee government to the people of western.

“The president means well for this country but a few individuals with old mindsets around him are stiff necked. Let him (President) take control of MSC bailout funds,” said Atwoli.

Atwoli explained that just like Pan Paper Millers in Webuye, MSC was facing collapse due to political irresponsibility by the area’s political leaders.

He claimed that some MPs from the region used to visit the company and were given money to keep quiet as funds were being looted.

“In 2010, I warned of imminent collapse of the firm just like Pan Paper where MPs used to collect Sh50,000 as the Asians shipped away millions. Our leaders have failed and we ought to hold them responsible,” he said.

“We also want the Government to ensure those responsible and top managers are prosecuted for crimes against humanity. Economic deprivation is a human rights violation. Let them sack senior managers and let junior workers continue with their work,” he said.

Financial woes

Meanwhile, Kakamega County Senator Boni Khalwale has asked the Government to treat MSC financial woes the same way it is treating Anglo leasing.

The senator questioned why the Government has failed to prosecute those involved in swindling the miller the same way it has prosecuted Anglo Leasing suspects.

“We want the government to move as it has done in the Anglo leasing scandal case and arrest and arraign former managers of MSC in court,” demanded Khalwale.

He castigated some unnamed MPs whom he accused of doing business with MSC and were awarded tenders with inflated costs saying they should apologise to the people or be shown the door in 2017.

“The MPs are known. Some were given tenders to make billboards while others were given sugar. They inflated tender costs to swindle our collapsing firm. We shall name and shame them if they don’t apologise,” warned Khalwale.

Mumias East MP Benjamin Washiali supported the move to dissolve the company’s board of directors saying there’s likelihood they tampered with an audit report they received in July, which was also forwarded to the Parliamentary Committee for Agriculture in December.

Fresh blood

“They have refused to sign the report and approve it despite implementing part of it by sending home various top managers in the company.

“We need fresh people, fresh minds and fresh blood to steer the miller to its former glory,” said Washiali who last week led farmers in demonstrating against those implicated in the audit report.

“If there are any MPs, MCAs or other leaders who engaged in improper business with the firm, they should also be prosecuted. I urge all elected leaders to desist from doing business with the firm.”

Lurambi MP Raphael Otaalo said there is need for total overhaul of the company’s top management to revive the ailing miller.

“Misappropriation of funds was done under the watch of the current board of directors. It’s inappropriate to pump Sh5 billion into the company with the same directors at the helm. Farmers should be given a chance to elect people who will help revive the backbone of our economy,” said Otaalo.

He said that if there is evidence that some MPs were bribed by former management at the firm, they should also be arrested and charged.